Volatility Returns To GFL Environmental Inc. (GFL), YRC Worldwide Inc. (YRCW)

GFL Environmental Inc. (NYSE: GFL) shares are 4.94% up in the year-to-date (YTD) period and have moved -3.40% or -$0.62 lower in the latest trading session. Comparatively, the stock is down -7.84% over the trailing 3-month period. If we look at the shorter duration, its week performance is -5.72% and -19.05% over the month.

Analyst Recommendations

On July 15, 2020, CIBC recommended the GFL stock is a Sector Outperform, while earlier, Goldman had Upgrade the stock as a Buy on August 19, 2020. 0 of the 12 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 9 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $17.63. The forecasts give the GFL Environmental Inc. stock a price target range of $30.34 on the higher side while at least one analyst think the stock could plunge to a low of $21.21. The two limits represent an upside potential of 41.89% or 16.88%.

YRC Worldwide Inc. (NASDAQ:YRCW), on the other hand, is trading around $4.22 with a market cap of $224.88M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $7.00 and spell out a more modest performance – a 39.71% return. Some analysts are even forecasting -$1.59 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the YRC Worldwide Inc. (YRCW) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

YRCW’s operating margin was positive on the trailing 12 months basis, remaining steady at 1.00%, while the operating expenses over the recent quarter were at $732.0 million. This represented a 27.91% of the company’s total revenues which amounted $1.02 billion. With this in place, we can see that the company’s diluted EPS declined -$1.09 on the year-over-year period, shrinking to -$0.71 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $1.94 billion from $1.85 billion over the previous quarter. The cash flow from operating activities totaled $213.6 million, significantly higher than the -$29.5 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $189.5 million.

Insider activity

Insiders have transacted a total of 7 times at YRC Worldwide Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 shares. Insider sales totaled 176,792 shares over the same period, with these deals completed in 7 transactions. Looking at these numbers, we realize that net purchases over that period are -7.0 shares. Insiders now hold a total of 6.97M shares after the latest sales, with 22.20% net shares purchased.

Major holders

Insiders own 6.10% of the company shares, while shares held by institutions stand at 33.20% with a share float percentage of 49.28M. Investors are also buoyed by the number of investors in a company, with YRC Worldwide Inc. having a total of 125 institutions that hold shares in the company.